Make Sure What You Insure Stays Insured

Insurance can be a tricky business, and it seems like there is always some get out clause the insurance company can use to avoid paying you the money they owe.

Hurricane Katrina provides a good example of this. Despite many residents having home insurance which protected them against hurricanes, most did not have flood protection (something which is not included in a standard home insurance policy).

After the hurricane was over and many homes had been destroyed, the residents of New Orleans began to file insurance claims for their property.

However rather than receiving a big check which they could use to rebuild their home, they were told that they would not receive any money because they were not covered against floods.

Basically the insurance companies told them that it wasn’t the hurricane which destroyed their home, it was flooding, and so they would receive no compensation.

As a result of the insurance companies refusal to pay out these insurance claims, many residents of New Orleans are now homeless and have little or no money to support themselves with.

Make Sure You Are Covered

Hurricane Katrina showed just how careful you have to be when it comes to taking out an insurance policy, because if you don’t understand what you have signed up for, you may think you’re covered, but later on find out you’re not.

So here are some tips you can use to make sure that what you insure stays insured.

Document Any Losses

Anything that you have insured that becomes damaged document as best you can.

For example, if you are in a car accident take the name of the driver, their licence number, address, make of car and contact details of any witnesses who saw the accident.

If your property is damaged, take pictures of the damage or record it using a video camera.

If it is appropriate, file a police report and get the police involved so they can document it themselves.

Finally, for any damage that you wish to claim on insurance get several estimates on what it will cost to repair, so that you can present a reasonable figure to your insurance company to claim for.

Get What You Are Owed

When you file an insurance claim someone will come to assess the damage, and then you will be told how much the insurance company is willing to compensate you for.

Sometimes the amount you are offered is lower than what the repair actually costs. If this occurs, find out why you are not being offered the full amount and provide evidence which supports your initial claim.

This could include receipts or estimates you have received from other people. If they still refuse to offer you more, ask to speak to a supervisor or manager to get the amount you are entitled to.

Preparing Your Claim

If you file an insurance claim, the first thing you should do is to make sure your insurance policy actually covers you for your loss. If it doesn’t, then there is little point in filling a claim.

If at any time you write to or speak with your insurance company, make sure you keep a record of all communication you have had with them should you need it for future reference.

Get Legal Help

If your claim has been refused for a major loss and you are unable to rectify the situation by yourself, hire a lawyer who specialises in insurance concerns.

This will obviously be expensive, but if there is a significant amount of money involved it will be worth it.

Remember It’s A Business

An insurance company is a business, and they are there to make money not friends.

So always be absolutely clear as to what your policy covers you for, because if there is a way the insurance company can avoid paying you, they will use it.

Hurricane Katrina victims have experienced first hand just how ruthless the insurance companies can be.

So remember that no matter how nice the salesman was when you were sold your policy, business is business, and so you better know what you are doing because they certainly do.